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An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.40 P(medium-quality oil) = 0.15 P(no oil) = 0.45 a. What is the probability of finding oil (to 2 decimals)? 0.55 b. After 200 feet of drilling on the first well, a soil test is taken. The probabilities of finding the particular type of soil identified by the test are given below. P(soil|high-quality oil) = 0.25 P(soil|medium-quality oil) = 0.90 P(soil|no oil) = 0.25 Given the soil found in the test, use Bayes' theorem to compute the following revised probabilities (to 4 decimals). P(high-quality oil|soil) 0.2424 P(medium-quality oil|soil) 0.5488 P(no oil|soil) 0.2121 What is the new probability of finding oil (to 4 decimals)? 0.4125 According to the revised probabilities, what is the quality of oil that is most likely to be found? Medium-quality

An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.40 P(medium-quality oil) = 0.15 P(no oil) = 0.45 a. What is the probability of finding oil (to 2 decimals)? 0.55 b. After 200 feet of drilling on the first well, a soil test is taken. The probabilities of finding the particular type of soil identified by the test are given below. P(soil|high-quality oil) = 0.25 P(soil|medium-quality oil) = 0.90 P(soil|no oil) = 0.25 Given the soil found in the test, use Bayes' theorem to compute the following revised probabilities (to 4 decimals). P(high-quality oil|soil) 0.2424 P(medium-quality oil|soil) 0.5488 P(no oil|soil) 0.2121 What is the new probability of finding oil (to 4 decimals)? 0.4125 According to the revised probabilities, what is the quality of oil that is most likely to be found? Medium-quality

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.40 P(medium-quality oil) = 0.15 P(no oil) = 0.45 a. What is the probability of finding oil (to 2 decimals)? 0.55 b. After 200 feet of drilling on the first well, a soil test is taken. The probabilities of finding the particular type of soil identified by the test are given below. P(soil|high-quality oil) = 0.25 P(soil|medium-quality oil) = 0.90 P(soil|no oil) = 0.25 Given the soil found in the test, use Bayes' theorem to compute the following revised probabilities (to 4 decimals). P(high-quality oil soil) 0.2424 P(medium-quality oil|soil) 0.5488 P(no oil|soil) 0.2121 What is the new probability of finding oil (to 4 decimals)? 0.4125 According to the revised probabilities, what is the quality of oil that is most likely to be found? Medium-quality
Transcribed Image Text:An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.40 P(medium-quality oil) = 0.15 P(no oil) = 0.45 a. What is the probability of finding oil (to 2 decimals)? 0.55 b. After 200 feet of drilling on the first well, a soil test is taken. The probabilities of finding the particular type of soil identified by the test are given below. P(soil|high-quality oil) = 0.25 P(soil|medium-quality oil) = 0.90 P(soil|no oil) = 0.25 Given the soil found in the test, use Bayes' theorem to compute the following revised probabilities (to 4 decimals). P(high-quality oil soil) 0.2424 P(medium-quality oil|soil) 0.5488 P(no oil|soil) 0.2121 What is the new probability of finding oil (to 4 decimals)? 0.4125 According to the revised probabilities, what is the quality of oil that is most likely to be found? Medium-quality
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